Check eligibility for a mortgage
The UK's largest fee-free broker
No need for a credit check
Support through the whole process
CIS mortgages explained
CIS mortgages allow construction industry workers to borrow more than they are otherwise able to.
CIS mortgages are for individuals registered with the Construction Industry Scheme (CIS). With a CIS mortgage, the amount you can borrow is based on your net income, rather than your net profit.
This is useful because many construction workers write off expenses against their income for tax purposes, reducing their net profit and therefore the amount that a traditional mortgage provider will lend them.
Instead of providing three years’ worth of accounts, you only need to show your net income from your payslips.
Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
Who is eligible for a CIS mortgage?
If you’re a construction worker or you own a business that takes part in construction work, you can register for the Construction Industry Scheme (CIS).
It’s not compulsory for everyone to register, but you’ll save money on tax by doing so. You must be CIS-registered to qualify for a CIS mortgage.
To be accepted, you’ll need to provide six months of CIS payslips (taxed at the CIS rate of 20%) and six months of bank statements, although it could benefit your application if you provide more. The minimum deposit for a CIS mortgage is 5% of your desired property’s value, although you could be approved for a better deal with a bigger deposit.
How to apply for a CIS mortgage?
Not all lenders offer CIS mortgages. The best way to find a provider that offers a suitable deal is via a professional mortgage adviser. These individuals will be able to offer useful advice on how to find the best deal for your circumstances.
The application process is the same as it is for a traditional mortgage. You can apply directly to the lender or via a mortgage broker.
CIS mortgage providers will calculate the amount that you can borrow by multiplying your annual net income (usually by four or five, but this is dependent on the lender and your individual circumstances).
CIS mortgages with bad credit
If you have a bad credit score, you can still be approved for a CIS mortgage. Many lenders will still offer you a great deal, provided that you’ve had no defaults or CCJs in the previous 24 months. Learn more about getting a mortgage with CCJs or defaults.
Pros and cons of a CIS mortgage
Pros
- You may be approved for a larger mortgage amount, especially if you write off expenses for tax purposes.
- You may be approved for a good rate, even if you have a poor credit score.
Cons
- There are a limited number of providers that offer CIS mortgages.
- Traditional lenders may be able to offer you a better mortgage rate.
Bottom line
Although providers are in the minority, CIS mortgages work well for those with a weaker credit score. It’s not guaranteed that you’ll get a cheaper mortgage rate with a CIS mortgage, so be sure to explore your options with a traditional lender before you commit.
Finder survey: Do you know what can harm your chances of getting a mortgage?
| Response | 55+ | 45-54 | 35-44 | 25-34 | 16-24 |
|---|---|---|---|---|---|
| No | 54.02% | 46.2% | 45.76% | 40.99% | 48.54% |
| Yes | 45.98% | 53.8% | 54.24% | 59.01% | 51.46% |
Source: Finder survey by Censuswide of 1032 Brits, December 2023
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.
More guides on Finder
-
Home ownership in the UK: Key statistics for 2024
Official data shows that 63% of people in England and Wales own their home. We look at the latest home ownership statistics in the UK.
-
When will interest rates come down in the UK?
Some of the UK’s brightest minds in economics and property share their interest rate predictions ahead of the next Bank of England base rate meeting.
-
Mortgage statistics 2024: Average UK mortgage size
From the average house price to how many outstanding mortgages there are, we explore all the latest mortgage statistics in the UK.
-
Buying a council house and the Right to Buy scheme
How the Right to Buy scheme works.
-
Will an overdraft affect my mortgage application?
Learn how overdrafts affect your chance of being approved for a mortgage.
-
Compare mortgages for the over-80s
If you’re over 80 and considering applying for a mortgage, read this guide to make sure you’re getting the right home loan.
-
Compare mortgages for the over-50s
Explore this guide on how to get the right home loan for you if you’re aged over 50.
-
Compare the best fixed-rate mortgages UK 2024
Find out how you can benefit from a fixed-rate mortgage.
-
Compare the best variable rate mortgages UK 2024
Find and compare lenders that offer competitive variable rate mortgages.
-
How to remove someone’s name from a title deed
A change in personal circumstances may make it necessary to remove a name from a title deed. Here’s how you can go about it.